Targa subsidiary to acquire Lucid Energy Delaware for $3.55 billion

Targa Resources and Lucid Energy Group said June 16 that a subsidiary of Targa will acquire Lucid Energy Delaware from Riverstone Holdings and Goldman Sachs Asset Management for $3.55 billion cash. Targa, a leading provider of midstream services, is one of the largest independent midstream infrastructure companies in North America. Lucid, largest privately held natural gas processor in Permian Basin, provides gathering, treating and processing services in Delaware Basin, including about 1,050 miles of pipelines and about 1.4 billion cubic feet per day of cryogenic natural gas processing capacity in service or under construction primarily in Eddy and Lea counties in New Mexico.
Targa’s Delaware system currently consists of about 6,100 miles of natural gas gathering pipelines and eight processing plants with total capacity of about 1.29 bcfd. Closing for this deal is expected in 2022Q3. Enverus said the transaction is the largest midstream A&D agreement in Permian Basin since 2019.